Apple Ordered To Pay $14.4 Billion In Back Taxes After Losing EU Court Battle

The European Court of Justice (ECJ) decided against Apple in a protracted legal battle over a tax bill in Ireland of 13 billion euros ($14.4 billion). This is a big legal setback for the tech giant. The ruling ends a decade-long court struggle that started in 2016 when Ireland was instructed by the European Commission to recoup the enormous amount of unpaid taxes, claiming that Apple had profited from “illegal” tax breaks in the nation.

The bad news may have been obscured by Apple’s announcement of improvements to its iPhone, Apple Watch, and AirPod product lines, which was made just hours before to the verdict. Apple’s stock fell almost 1% as a result of the court ruling.

The Irish government, while noting the ECJ’s ruling, highlighted that the case is now of “historical relevance only,” restating its position that it does not grant preferential tax treatment to any companies. Apple responded by saying that it always pays the taxes it owes and arguing that the case was none of how much tax a company should pay, but rather to which government. Apple added that this was an attempt by the European Commission to apply retroactive changes to tax law.

The legal tussle has been a notable part of the EU’s wider push to rein in the might of big American tech firms. The Commission decision of 2016 was canceled in 2020 by the General Court of the EU, which favored Apple. However, the ECJ has presently annulled reinstated it, marking an important defeat for the technology giant.

In addition to taxes, Apple is also under investigation by EU regulators; it was recently fined 1.8 billion euros for antitrust infractions, and there are still investigations underway under the EU’s Digital Markets Act. This reflects the increasing regulatory pressure from the EU on market-leading tech companies.